Contributions of Appreciated Stock
Why give appreciated stock?
Part of our Jewish tradition says you shall provide opportunities for those
who have the ability to give more so that as a congregation you can afford to
welcome all who want to participate in your synagogue community: "My
House shall be called a house of prayer for all peoples."
--Isaiah 56:7.
Here's how it works.
The first thing you need to do is evaluate how long you've held the stock. If
the sale of the stock on the day of the contribution would result in a
long-term capital gain (meaning that you held the shares for more than one
year), you can generally deduct the full fair market value of the donated
shares.
Example: You've held 1,000 shares of stock for more than one year and the
shares are worth $50 each on the day you donate them. Your charitable
contribution deduction is $50,000 -- no matter at what price you originally
bought the shares.
Consider that if you bought the shares long ago at $15 per share, your
capital gain would be in the neighborhood of $35,000. By donating the stock, you
have no taxable gain exposure. At 20%, the tax on $35,000 would have been
$7,000. You are now getting a deduction for a $50,000 donation, and you also
avoid the $7,000 in taxes you would have owed the IRS if you had actually sold
the stock and donated the $50,000 cash received from the sale.
So, you can enjoy saving $7,000 in taxes on the appreciated value and receive
a tax deduction for the entire $50,000 contribution. If you're in the 40%
bracket, that $50,000 charitable contribution could save you $20,000 of tax.
How It's Done?
To donate stock, you just have to transfer ownership of the shares, which
your broker can help you with. The Temple office also has the appropriate forms
if you need them. We are able to accept stock contributions from most brokers.
Which Stocks to Give?
Please remember that if the stock you donate has appreciated considerably,
you'll realize a large charitable deduction. But remember that your total
deductions for this type of charitable contribution are generally limited to 30%
of your Adjusted Gross Income (AGI). Please contact your tax professional for
the exact tax outcome.
What Happens to the Stock?
Temple Beth El's policy is to immediately sell the stock as soon as it
receives the shares and reinvest the proceeds under the Temple's Investment
guidelines.
Why Give Stock?
The Temple believes that giving is just another part of Jewish life. And, we
are all part of a great community. Giving to the Temple in this manner is a
winning situation for all. You get to help your Jewish community while getting a
substantial reduction in your tax liability.
This deduction is granted by legislative grace because the government
realizes that we're all better off when we make contributions to our religious
community.
Information You Will Need
Date:
# of Shares, Symbol, Name
From: Firm, Account #, DTC #, In the Name
of
To: Temple Beth E1
Account#: 11937643
DTC #0164, Code 40
Giving is a wonderful mitzvah -- Giving and getting a tax break makes
it even more enjoyable!
[back
to top]
|
